This article discusses how NSW strata laws define and apply nsw what is sustainability infrastructure, clarifying which common property changes qualify under the reduced voting rules.
Question: What counts as “sustainability infrastructure” under recent NSW strata changes? Do measures like screen doors or clothes drying on balconies fall under sustainability infrastructure?
Since the 1 July changes to sustainability in NSW strata, our owners corporation has struggled to understand exactly what qualifies as a “sustainability” item. Does it cover anything that reduces energy or water use, or more broadly, anything that reduces the carbon footprint of the building?
Most people agree that obvious items such as solar panels, double glazing and EV chargers would be included. However, there is confusion about whether less obvious measures are also protected. For example, does reducing the use of air conditioning by installing screen doors, or reducing the use of clothes dryers by allowing washing to be hung on balconies (despite existing by-laws that prohibit this), fall within the sustainability provisions?
Can you please explain what sits under “sustainability” in practical terms so owners corporations can update and apply their by-laws correctly?
Answer: Generally, any infrastructure that reduces “carbon footprint”, which the Act refers to as “greenhouse gas emissions”, could fall within the definition of “sustainability infrastructure”.
The Strata Schemes Management Amendment (Sustainability Infrastructure) Act 2021 (‘the Amendment”) introduced section 132B to the Strata Schemes Management Act 2015 (NSW). Section 132B states that any resolution in respect of “sustainability infrastructure” would require a special resolution but pursuant to section 5(1)(b)(ii), requires only 50% value of votes cast to be specially resolved.
The Amendment had deliberately left the definition of “sustainability infrastructure” broad. As stated in the Second Reading speech: “sustainability infrastructure potentially includes a broad range of initiatives, so the bill has been drafted to ensure the benefit of the reduced voting threshold is available for any type of installation so long as its purpose is improved sustainability.”
Section 132B defines “sustainability infrastructure” as:
changes to part of the common property (which includes the installation, removal, modification or replacement of anything on or forming part of that property) for any one or more of the following purposes–
- to reduce the consumption of energy or water or to increase the efficiency of its consumption,
- to reduce or prevent pollution,
- to reduce the amount of waste sent to landfill,
- to increase the recovery or recycling of materials,
- to reduce greenhouse gas emissions,
- to facilitate the use of sustainable forms of transport,
- a purpose prescribed by the regulations.
Note: For example, installing electric vehicle charging stations.
Only electric vehicle charging stations are expressly defined to be “sustainability infrastructure”. At present, there have not been any additions to this definition in the regulations. Decisions of the Tribunal have further clarified the definition of “sustainability infrastructure”, for example Laws v The Owners – Strata Plan 97230 [2022] NSWCATCD 131 stated in obiter, at [20] that “Solar panels are sustainability infrastructure.”
In respect of the inquiry, some of the items cited are “sustainability infrastructure”. They can be specially resolved with 50% value of votes cast, i.e. EV charging stations and solar panels. Generally, any infrastructure that reduces “carbon footprint”, which the Act refers to as “greenhouse gas emissions”, could fall within the definition of “sustainability infrastructure”.
The inquirer queries expressly in respect of “reduced use of air-conditioning (allowing installation of screen doors), clothes dryers (hanging washing on balconies)” and also indicates these are “currently outlawed by bylaws”. I’m unable to comment on bylaws I haven’t reviewed. I also can’t comment on whether these items engage any of the “sustainability” conditions under the Act. But these items are likely not captured by section 132B. That section is in respect of common property changes, and these items mentioned by the inquirer do not appear to involve changes to common property.
It is also important to remember that section 132B does not mandate or require the installation of any “sustainability infrastructure”. What it does is allow for a reduced vote to specially resolve these common property changes, from 75% to 50%. The SSMA reserves the decision of what an owners corporation should do to the democratic will of the members of the owners corporation.
Matthew Lo Kerin Benson Lawyers E: enquiries@kerinbensonlawyers.com.au P: 02 8706 7060
This post appears in the March 2026 edition of The NSW Strata Magazine.
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